STAR shines brightest in claim settlement

When it comes to claim settlement, private insurance companies are perceived to be better than their public sector counterparts, reveals the findings of the Hindustan Times-MaRS survey. Respondents to the survey ranked India’s first stand-alone health insurance company, Star Health & Allied Ins urance Company, as the best in terms of settlement of mediclaim policies.

Health insurance in India covers around 11% of the population, according to the latest Comptroller and Auditor General (CAG) report.

But low penetration notwithstanding, health insurance is the most sought after portfolio next only to motor insurance.

And as Gopal Verma, director, e-Meditek, a third-party administrator (TPA) points out; stand-alone health insurance companies will play a critical role in the domestic market to increase penetration.

“Star Health & Allied Insurance Company along with a few other companies have a single window clearance mechanism which reduces the settlement to less than a week,” said Verma.

Industry experts said that once the regulatory issues including the foreign direct investment (FDI) norms are addressed, several more standalone health insurance companies will foray into India.

The Insurance Amendment Bill, that is pending in Rajya Sabha, seeks to enhance the cap on FDI in private insurers from the current 26% to 49%.